Ministry of Environmental Protection brewing environmental protection industry planning implementation advice

After the Central Economic Work Conference proposed to vigorously develop the circular economy and the environmental protection industry, major ministries and commissions have started to brewing supporting policies for the development of the environmental protection industry.
A person close to the Ministry of Environmental Protection told reporters that the Ministry of Environmental Protection is brewing the implementation of "energy-saving environmental protection industry planning," the specific implementation of the views, many heavy policies will be included. The main idea is to increase the environmental standards requirements as the driving force, truly transform the environmental protection industry into a market-oriented demand, and turn the government into a buyer of environmental protection services.
The Ministry of Finance and the Ministry of Housing and Urban-Rural Development are all cultivating supporting policies. The Ministry of Finance intends to issue a fund that encourages the development of the environmental industry and enterprises. The Ministry of Housing and Urban-Rural Development plans to increase supervision of urban sewage facilities to promote the demand for the environmental protection industry. The relevant ministries and commissions are seeking advice from the industry associations and research institutions to promote the development of the environmental protection industry.
Many ministries and commissions made efforts at the same time. After the "Energy Conservation and Environmental Protection Industry Planning" was put forward, the Development and Reform Commission, the Ministry of Environmental Protection and other departments began to formulate plans for implementation of "opinions" and some subprojects.
The reporter learned that the “Environmental Services Industry Planning” will be placed under the “Modern Service Industry Planning” and will be led by the National Development and Reform Commission. In formulating the project plan, the National Development and Reform Commission plans to introduce the contract energy management model in the field of industrial energy conservation to the energy conservation and environmental protection industry and implement contractual environmental services.
Specifically, it will be divided into two forms: one is that polluting companies will use the contract service to share the abatement cost with polluting enterprises; the other form is government procurement of environmental services provided by environmental service providers.
As contractual environmental services and contract energy management are similar, their industry standards and operating models will be led and formulated by the NDRC.
At the same time, the Ministry of Environmental Protection has also been tasked to take the lead to formulate specific implementation opinions for implementing the "Energy Conservation and Environmental Protection Industry Plan", which will be implemented after approval by the State Council.
Among the environmental protection and energy conservation industries, water is the most important piece. The scale of the sewage treatment and tap water market alone has exceeded RMB 1 trillion.
The water market has been long-term management because it involves ministries such as construction, environmental protection, and water conservancy. In the reform of most departments in 2009, the central government authorized local governments to determine the ownership of the water business.
Urban water affairs have traditionally been managed by the Ministry of Housing and Urban-Rural Development. In recent years, the Water Affairs Bureau has been organized mainly by water conservancy departments in Hainan and Chongqing, forming a water management-led integrated management model.
However, after the concept of “environmental protection industry” is put forward, water integration will help open up the urban and rural integrated water environmental protection market, especially to cultivate the rural environmental protection market in advance. Therefore, the Ministry of Housing and Urban-Rural Development, which governs urban water affairs, is not far behind.
According to sources close to the Ministry of Housing and Urban-Rural Development, the Ministry of Housing and Urban-Rural Development is brewing a document on promoting the operation and management of urban sewage treatment plants. It intends to strengthen the supervision of the operation of urban sewage treatment plants and improve the efficiency of operation and the effect of emission reduction.
Qiu Baoxing, deputy director of the Ministry of Housing and Urban-Rural Development, said at the 5th Municipal Water Affairs Conference recently that most of the sewage treatment plants did not reach a loading rate of 60%. The goal of adding 162,724 km of sewage pipelines has not been realized, and the lack of pipeline network has led to a significant problem in the loading rate of sewage treatment plants.
According to sources close to the Ministry of Environmental Protection mentioned above, the Ministry of Finance has also participated in the energy conservation and environmental protection industry. The Ministry of Finance is preparing to introduce industrial funds to support and develop energy-saving and environmental protection industries.
Government monopoly to be solved Wen Yibo, Honorary President of the All China Federation of Industry and Commerce Environmental Service Chamber of Commerce, said that the core of the development of the environmental protection industry lies in the government's definition of a good boundary, the government does a good job of supervision, and continuously raises the level of supervision and standards, so as not to interfere with the development of the industry. Let the market mechanism decide the future of the environmental protection industry. This should be the core content of the "12th Five-Year Plan" environmental protection industry.
The person in charge of an environmental protection company stated that while there is a problem that government supervision is not in place in the environmental protection industry, on the other hand, the government has taken a large package and some marketable links have not been transferred to private enterprises.
For example, under the policy of “expanding domestic demand” at the end of 2008, many local governments cancelled the originally planned environmental protection industry projects and instead made the government's investment and financing platform do it. The reason for this is that these projects can bring stable cash flow to the government, help achieve the listing of investment and financing platforms, and provide financing for local city construction.
The person in charge of the above-mentioned environmental protection company stated that facilities such as waterworks and waste treatment plants in major cities such as Beijing often refuse public market operations because of public safety. Only the second-tier and third-tier cities need to build environmental protection industrial facilities, but local governments lack the money, only to market the environmental facilities for financing, but only take out a certain section of industry for financing.
For environmental facilities projects that have already been market-oriented, due to the lack of contractual spirit of individual local governments, they impose “political tasks” on environmental service companies, causing market-oriented environmental service companies to make profitability difficult.
Fu Tao, director of the Institute of Environmental Industry at Tsinghua University, said that during the “12th Five-Year Plan” period, local governments need to break the monopoly and the idea of ​​organizing, in order to promote the development of the environmental protection industry. As long as the government strengthens the supervision and implementation of standards, it can promote the progress of the environmental services industry.
Fu Tao said that the development of the environmental protection industry also needs to improve the legislation of the franchise system and regulate the cooperation between private enterprises and the government. In the final analysis, environmental protection should be developed into an industry. The main body should be a company, not a government.
"If the environmental protection industry can seize this opportunity, its output value for the Chinese economy in the next five years will be no less than that of the high-speed rail industry," said Fu Tao.

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